The large inflow put the yearly number at over $100
billion, with the first and second quarter inflows reaching
$38.2 billion and $43.3 billion, respectively, according to
Tremont Capital Management’s TASS Research. The company
now estimates that the amount of money invested globally in
the hedge fund universe is $890 billion, with another $265
billion invested in managed accounts.

The majority of the money is flowing into Long/Short
Equity ($6.9 billion), Global Macro ($4.2 billion), and
Event-Driven ($4.6 billion) strategies, which are often
characterized by broad investment latitude and less
capacity constraints, according to TASS Research. With a
shortage of managers in other styles, such as Equity Market
Neutral, more and more investors have been pushing their
money into these three strategies.

The TASS Research report indicates that Convertible
Arbitrage funds have seen net outflows in recent months due
to lackluster performance in the area.

TASS Research, owned and operated by Tremont Capital
Management, provides data and research on approximately
6,200 hedge funds.